After Effects: "Not enough storage to procces this command"

Please HELP. It is driving me nuts! I have 70GB of the Free space on my hard drive. I just reformatted that disk. 2GB of RAM. When I try to render even the simple 10 sec project (couple of opacity changes, glow, drop shadow) the rendering quits after rendering exactly 4 seconds of the project. I also get "not enough memory available to process this comand. (8) (25::60)" or "An error retriving video (or audio) stream" about every 5 minutes or so. I checked every possible known to me solution, nothing helped. Finishing the project becomes a very time consuming process when I have to quit and restart AE every time I get one of the above!